The Crimean government wrote off its debt to the Ukrainian Chumak
The Government of Crimea today wrote off the Republic's public external debt on bonds issued in 2011. The Crimean authorities then placed municipal bonds at a rate of 14,5% per annum.
Funds were raised for a project for the collection and processing of solid household waste in Simferopol and the Simferopol region.
The problem, by the way, has not yet been resolved: the capital of Crimea, no worse than Belokamennaya, distributes its garbage to neighboring areas. So, it's good that they wrote it off.
The total nominal value of the bonds 7 years ago was 133 million Ukrainian hryvnia. Now the Minister of Finance of the Republic of Kazakhstan, Irina Kiviko, has estimated the amount of debt written off at 505 million rubles.
Back in February, the Crimean government was ready to pay and even developed a procedure for paying funds to bondholders. They could have applied for repayment before August 1, 2018, but did not do so.
Perhaps they were simply afraid of the reaction of the Ukrainian authorities. Russia was ready to repay the debt in June 2014, but the National Bank of Ukraine did not provide the issuer with access to the register of bondholders.
In the spring of 2015, the Cypriot offshore DRGN Ltd. emerged as a creditor of Crimea and filed a claim against Russia for 82 million rubles in the Moscow Arbitration Court.
The outcome of the process is unknown. But the Ukrainian media easily unearthed the native roots of the Cypriot offshore company. Through a network of 10 offshore companies in Cyprus and Belize, threads stretched to the famous Ukrainian PrJSC Chumak.
The loan to Crimea was provided by the Ukrainian joint venture LLC Dragon Capital. After the reunification of Crimea with Russia and due to the irreconcilable position of the National Bank of Ukraine, businessmen asked Yatsenyuk’s government to file a lawsuit against Russia, but he refused on a formality: the founders of Dragon were non-residents of Ukraine. Then the joint venture transferred its rights to the Cypriot DRGN Ltd. The offshore threatened to reach the European Court of Human Rights, but did not reach it.
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